Only 158K jobs were added in the private sector in June according to ADP. The figure for May was revised down to 230K, still way above the BLS figure. This is a worse outcome than expected. While this doesn’t necessarily mean a weak growth in jobs in the official figure, the dollar reacts.
The movements are not huge, but the direction is clear:
- USD/JPY slipped to 1.1320
- EUR/USD extends its ascent en route to 1.14.
- GBP/USD is getting closer to 1.2950.
- AUD/USD is heading to 0.7590.
- USD/CAD is at 1.2940.
The ADP Non-FArm Payrolls report was expected to show a gain of 185K jobs in June, after a whopping 253K in May. This is considered a significant hint towards the Non-Farm Payrolls on Friday, but the official BLS version and this publication beg to differ in many cases.
The US dollar was doing well against the yen but falling against the euro. The euro enjoyed upbeat meeting minutes from the ECB and erased around half of the correction.
In any case, the reaction to the NFP depends on the wages.Get the 5 most predictable currency pairs